As a Licensed Conveyancer, I have many clients who are a first home buyer who buy vacant land or off the plan homes or units. The most common questions we get asked are;

  1. 'If I have purchased property already, can my partner purchase and claim the first home benefits? and
  2. 'If I purchase this property in just my name, can my partner then purchase another and we both receive the first home benefits'?

For a first home buyer with a spouse the first step to providing the answer is figuring out what the Office of State Revenue consider to be a partner, or as they title it a 'spouse/de facto'. Spouse would include your wife or husband. When we consider de facto this would include someone you are living with, have children with and/or someone who is dependent on you/someone you are dependent on. So what you consider to be a de facto partner may differ from that of the Office of State Revenue. If you are unsure, it is best to check with them before entering into a Contract for Sale.

Now that we know what constitutes a spouse, we can determine whether having one affects your ability to purchase property and receive the first home benefits. Both the factsheets Office of State Revenue provide for the First Home Owners Grant and First Home New Exemption or Concession from Duty state that the applicant AND their spouse must not have owned property in Australia before. There are a couple of exceptions to this, but this is the general rule.

So, if you have a spouse and they have owned property in Australia before, chances are you are not eligible for the First Home Benefits.

In addition to this, you must declare your spouse on the Grant and Duty Exemption/Concession application form. It is so then that you are restricted from each purchasing a property and claiming the benefits twice.

To be an eligible for the First Home Buyer grant you will need to be an 'eligible purchaser' under the Contract. The Office of State Revenue describe an 'eligible purchaser' as:

  1. Being a natural person (i.e. not a company or trust)
  2. 18 years of age who has not, and whose spouse/de facto has not:
  3. at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor; or
  4. previously received an exemption or concession under First Home Plus.

Therefore, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.

However, each and every case is different and we would have to submit a request to the Office of State Revenue for their feedback.

A note to remember: If you apply for the grant and then it is found that you and your partner/spouse are not eligible to receive the grant then you will need to pay back the grant. Failure to pay the grant back may result in penalties and prosecution.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.